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About Nepali Language

Nepali or Nepalese (नेपाली) is a language in the Indo-Aryan branch of the Indo-European language family.
It is the official language and de facto lingua franca of Nepal and is also spoken in Bhutan, parts of India and parts of Myanmar (Burma). In India, it is one of the country's 23 official languages: Nepali has official language status in the formerly independent state of Sikkim and in West Bengal's Darjeeling district. The influence of the Nepali language can also be seen in Bhutan and some parts of Burma. Nepali developed in proximity to a number of Tibeto-Burman languages, most notably Nepal Bhasa (Newari), and shows Tibeto-Burman influences.
Historically, the language was first called Khaskura (language of the khas 'rice farmers'), then Gorkhali or Gurkhali (language of the Gurkha) before the term Nepali was taken from Newari. Other names include Parbatiya ("mountain language", identified with the Parbatiya people of Nepal) and Lhotshammikha (the "southern language" of the Lhotshampa people of Bhutan). The name 'Nepali' is ambiguous, as it was originally a pronunciation of Newari, the Tibeto-Burman language of the capital Kathmandu.

History of the language
Around 500 years ago, Khas from the Karnali-Bheri-Seti basin migrated eastward, bypassing inhospitable Kham highlands to settle in lower valleys of the Gandaki basin that were well suited to rice cultivation. One notable extended family settled in Gorkha, a small principality about halfway between Pokhara and Kathmandu. In 1559 AD a Lamjunge prince Dravya Shah established him in the throne of Gorkha with the help of local Khas and Magars. He raised an army of khas with the commandership of Bhagirath Panta. Later, in the late 18th century his heir Prithvi Narayan Shah raised and improvised an army of Khasa (Chhetri), Thakuri, Gurungs, and Magars and possibly other hill tribesmen and set out to conquer and consolidate dozens of small principalities in the Himalayan foothills. Since Gorkha had replaced the original Khas homeland as thary initiative, Khaskura was redubbed Gorkhali, i.e. language of the Gorkhas.[citation needed]
The most notable military achievement of Prithvi Narayan was conquest of the urbanized Kathmandu Valley, on the eastern rim of the Gandaki basin. This region was also called Nepal at the time. Kathmandu became Prithvi Narayan's new capital, from which he and his heirs extended their domain east across the Koshi basin, north to the Tibetan Plateau, south into the plains of northern India, and west across the Karnali/Bheri basin and beyond.[citation needed]
Expansion, particularly to the north, west, and south brought the growing state into conflict with the British and Chinese. This led to wars that trimmed back the territory to an area roughly corresponding to Nepal's present borders. Both China and Britain understood the value of a buffer state and did not attempt to reduce the territory of the new country further. Since the Kathmandu Valley or Nepal had become the new center of political initiative, this word gradually came to refer to the entire realm and not just the Kathmandu Valley. And so Gorkhali, language of Gorkha, again came to be known as Nepali.[citation needed]
Khaskura/Gorkhali/Nepali is spoken indigenously over most of Nepal west of the Kaligandaki River, then progressively less further to the east. This is shown graphically in detailed language maps of western [1] and eastern [2] Nepal as language number 73.
See also: Lhotshampa as Nepali is called in Bhutan.
-Reference: Wikipedia.org